Are you selling your own Silicon Valley home? Are you tempted to save on commissions? These are the top 10 mistakes FSBO sellers make when they attempt to sell their home. THey are:
5) Market Timing: Most home sellers assume that Spring is the best time to sell their home. The fact is that there are buyers for every season due to move, new job assignments, transfers and school change.
4) Contract Knowledge: Most sellers don’t understand the legal terms contained in the disclosure and listing documents associated with their sale. They also don’t understand the implication of the legally binding counters that they need to sign when dealing with buyers. documents and the disclosures. This is a huge risk specially in States like California where the buyer can and will challenge the sale for up to 5 years after the sale date if they spot misleading or improper disclosures.
3) Lowball offers: Home sellers are often insulted when a buyer offers them a lowball offer. After all that is a negotiation strategy on the part of the buyer. FSBO sellers often do not een counter these offers which is a lost opportunity.
2) Unqualified Buyers: WIthout help from a real estate agent For Sale By Owners often waste time with unqualified buyers. For Sale by Owners need to know the distinction between pre-approved buyers vs a pre-qualified buyers. This alone could crash your for sale by owner transaction. transaction. You also need to be able to distinguish between the buyer who have been approved by a direct lender vs a mortgage broker.
1) OverPricing: Most for sale by owners are guilty of over pricing their home since they don’t have access to MLS data or a competitive market analysis (CMA) that has been adjusted by a professional real estate agent to match their homes size, age, style and amenities. They are also emotionally attached to their home and believe their home has unique value.
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